Time To Polish Some Silver

Like it or not, we are heading straight into the Christmas season and soon it’ll time polish our silverware. Which incidentally has lost quite a bit of its luster over the past few years and it’ll take a lot more than toothpaste and elbow grease to regain its former glory. Over the last year a valiant attempt to turn a long term down trend came to a halt near the upper 25-month Bollinger early last summer after which silver reversed over 50% of what it had gained in the first half of the year.

However I believe it’s time to start paying attention again for two reasons: First the weekly Bollingers are increasingly tightening and secondly silver is now in the process of testing its 100-week SMA as well as 25-month SMA. On the monthly panel we are also starting to accumulate Net-Line Sell Lines, which until breached may offer us support. Of course if silver closes below 16.195 this month or the next then it’s quite possible that we will see it challenge 15 or lower.

The hourly panel right now shows us a spike low near the accumulation of longer term support. We also just rolled over into the March contract which aids our cause quite a bit. The most bearish panel by the way is the daily in that it has been scraping the lower 100-day Bollinger and has the potential to launch a strong trend toward the downside.

Long At Technical Inflection Point

All that means to me is that silver is currently at an inflection point. Either it can muster the strength for a bounce or it’s back on Santa’s naughty list. I decided to take out half an R here with an ISL below 16.2 and if you decide to follow this campaign I encourage you to be conservative with your stop.

More futures setups below the fold for my intrepid subs:

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